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Lost Profits Calculator

Estimate earnings foregone due to a business disruption, contract breach, or negligence — commonly used in litigation and insurance claims.

Lost Profits Details

Expected Revenue ($)

Actual Revenue ($)

Avoided Costs ($)

Period (months)

Results

Total Lost Profits

Monthly Average Loss

Revenue Shortfall

Lost profits calculations are commonly used in litigation, insurance claims, and business interruption analysis. The avoided costs (expenses not incurred due to the disruption) are subtracted from the revenue shortfall.

Formula

Lost Profits = Expected Revenue - Actual Revenue - Avoided Costs

Where:

Revenue Shortfall = Expected Revenue - Actual Revenue

Monthly Average = Total Lost Profits / Period (months)

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